A Baton
Rouge tax return business that is accused of costing the federal government as
much as $39 million by fabricating and inflating tax deductions for clients has
been barred from preparing taxes.

The
U.S. Department of Justice announced Tuesday that a federal court has
"permanently barred" Larry Carnell Dixon Sr. and his business, Dixon's Tax
Service, from preparing federal tax returns for others. Dixon's Tax Service
had locations in Baton Rouge and Gonzales.

The
court issued a civil injunction order to prohibit Dixon from preparing taxes.
Dixon and the business agreed to the injunction without admitting to the
allegations, the Department of Justice said. The order was signed by Judge
James Brady of the U.S. District Court for the Middle District of Louisiana.

Dixon's attorney, John
McLindon of Rainer Anding & McLindon in Baton Rouge, said the injunction was a "mutual deal."

Dixon "had pretty much quit preparing taxes
anyway, and he just agreed to the injunction as opposed to continuing
litigation," McLindon said. "He's just getting out of the business."

Dixon closed his offices when the lawsuit was originally
filed in January, McLindon said. He declined to address the allegations made in
the lawsuit.

The lawsuit accused Dixon
and preparers at the tax service of preparing returns that included fake
business expense deductions, so customers could report lower taxable income. They also prepared returns that claimed the Earned Income Tax Credit for clients who didn't qualify for it, the Department of Justice said.